Figure 23.2.5

-Refer to Figure 23.2.5. In Figure 23.2.5, the supply of loanable funds curve is SLF₀ and the demand for loanable funds curve is DLF0. An expansion that increases disposable income and expected profit

Question

Figure 23.2.5

-Refer to Figure 23.2.5. In Figure 23.2.5, the supply of loanable funds curve is SLF₀ and the demand for loanable funds curve is DLF0. An expansion that increases disposable income and expected profit

Quizplus · Accepted Answer

An expansion that increases disposable income typically increases savings, shifting the supply of loanable funds rightward. Additionally, higher expected profits increase the demand for loanable funds, shifting the demand curve rightward.

Figure 23.2.5 -Refer to Figure 23.2.5. in Figure 23.2.5, the Supply of 23.2.5